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Heuristics For Capacity Allocation And Queue Assignment In Congested Service Systems With Stochastic Customer Demand And Immobile Servers, Adam Colley
Operations Research and Engineering Management Theses and Dissertations
We propose easy-to-implement heuristics for a problem referred to in the literature as the facility location problem with immobile servers, stochastic demand, and congestion, or the service system design problem. The problem is typically posed as one of allocating capacity to a set of M/M/1 queues to which customers with stochastic demand are assigned with the objective of minimizing a cost function composed of a fixed capacity-acquisition cost, a variable customer-assignment cost, and an expected-waiting-time cost. The expected-waiting-time cost results in a non-linear term in the objective function of the standard binary programming formulation of the problem. Thus, the solution …